Slide 1: Fourth Quarter 2009 Webcast
Exhibit 99.1 Fourth Quarter 2009 Webcast February 12, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation, made on February 12, 2010, includes forward-looking statements based on current expectations and Alcon does not undertake the obligation to update the forward-looking information or statements. These expectations could differ materially from actual results an
Slide 3: Business Overview
Business Overview Kevin Buehler President and Chief Executive Officer
Slide 4: Strong Performance in Challenging Environment
Strong Performance in Challenging Environment Sustained solid financial performance – Q4 2009 Organic sales growth of 8.5% (+14.5% reported) – Q4 2009 Adjusted EPS growth of 14.2% (+7.1% reported) Reinforcing and building leading market share positions across all three product areas Continued signs
Slide 5: Signs of Broad U.S. Pharmaceutical Recovery
Signs of Broad U.S. Pharmaceutical Recovery U.S. Ophthalmology + Otic Rx Change vs. Prior Year 7% Full-year Growth Rates: 2009: +2.5% 2008: -1.4% +4.2% 2007: +2.2% 4% 2006: +3.7% 1% 20 20 20 20 20 20 20 20 20 20 20 20 08 08 08 09 09 09 08 08 08 09 09 09 /M /J /S /M /J /S /J /M /N /J /M /N -2% UL UL
Slide 6: Rising U.S. Cataract Procedure Volumes
Rising U.S. Cataract Procedure Volumes AcrySof® IOL U.S. Unit Growth 12% 10.4% 8.5% 8% 6.4% 5.2% 4% 2.1% 0% Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 -2.2% -4% Source: Company Data Growth rates as compared to same period in prior year
Slide 7: Achieving Strong Organic Growth
Achieving Strong Organic Growth Global Organic Growth by Quarter 10.0% 9.0% 8.5% 8.0% 6.0% 4.8% 4.0% 3.3% 2.0% 0.0% Q1 2009 Q2 2009 Q3 2009 Q4 2009 Reported Growth -2.8% -3.4% +5.9% +14.5% Growth rates as compared to same period in prior year Organic sales growth is a non-GAAP measure presented to g
Slide 8: Balanced Global Growth
Balanced Global Growth Full Year Global Sales by Product Line $4,000 +4.5% Reported +4.0% Reported -3.2% Reported +7.6% Organic Growth +7.1% Organic Growth 0.0% Organic Growth $3,000 $2,997 (dollars in millions) $2,881 $2,677 $2,561 $2,000 $1,000 $852 $825 $0 Pharmaceuticals Surgical Consumer 2008 2
Slide 9: Balanced Global Growth
Balanced Global Growth 2009 Sales by Geography $1,163 Reported: + 1.0% Emerging Constant Currency: + 11.2% Markets $2,914 17.9% Reported: 3.8% U.S. 44.8% Developed International 37.3% $2,422 Reported: + 3.7% Constant Currency: + 6.9% (dollars in millions) Constant currency sales growth is a non-GAAP
Slide 10: Commercial Execution Driving Market Share Gains
Commercial Execution Driving Market Share Gains Global U.S. RX Growth November YTD December YTD Brand Market Brand Market TRAVATAN® Family 22.1% 7.4% 22.1% 5.2% Azopt® + Azarga® 15.0% 8.6% 10.9% 10.9% Vigamox® * 8.9% 3.7% -1.4% -1.6% NEVANAC® 78.6% 8.7% 11.0% 8.3% Patanol® + 20.5% 7.3% -1.5% -2.1% P
Slide 11: Multiple Sources of Global Glaucoma Growth
Multiple Sources of Global Glaucoma Growth Global Glaucoma Market Share by Product 16.0% 15.5% 12.0% 9.7% 8.0% 4.0% 0.0% Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 *4QTD ® ® ® ® ® AZOPT AZARGA TRAVATAN TRAVATAN Z DUOTRAV Source: IMS (top 31 countries) *4QTD 0
Slide 12: AcrySof IQ ReSTOR +3.0 Driving PC-IOL Gains
AcrySof® IQ ReSTOR® +3.0 Driving PC-IOL Gains U.S. PC-IOL Market Share U.S. PC-IOL Market Share as of Q4 2008 as of Q4 2009 45.0% 57.5% 9.5% 29.3% 45.5% 13.2% B&L AMO Alcon B&L AMO Alcon Source: Market Scope Source: Market Scope
Slide 13: Strong Advanced Technology IOLs Growth
Strong Advanced Technology IOLs Growth Advanced Technology IOL Global Sales $100 Launch of AcrySof® IQ ReSTOR® and IQ Toric reinvigorating advanced technology IOL sales growth 50.0% $75 34.2% 30.1% (dollars in millions) $50 0.8% $25 $0 Q1 Q2 Q3 Q4 ReSTOR® IQ +3.0 & 2008 2009 Toric IQ Launch Source:
Slide 14: LAUREATE Driving Emerging Market Growth
LAUREATE® Driving Emerging Market Growth Emerging Market Organic Growth LAUREATE® Unit Sales in Emerging Markets 25% 95% increase in LAUREATE® World 500 Phaco System unit sales 20% 403 400 15% 14.1% 300 11.3% 11.5% 11.2% 10% 207 8.1% 200 5% 100 13 0% 0 Q1 Q2 Q3 Q4 FY 2007 2008 2009 2009 2009 2009 20
Slide 15: Investing in Near Term Growth Opportunities
Investing in Near Term Growth Opportunities Acquisition of Optonol, Ltd. – Ex-PRESS™ Mini Glaucoma Shunt • Approved and marketed in the United States, Europe, Canada, Australia and several other countries – Provides immediate entry into surgical glaucoma market Transaction with Sirion Therapeutics,
Slide 16: Entering a New Era of R&D Pipeline Development
Entering a New Era of R&D Pipeline Development Transforming research and development process Focus on critical unmet medical needs • Glaucoma, retinal disease, dry eye and cataract Greater access to compounds and technology AstraZeneca Extensive library of small molecules ESBATech Platform for ongoi
Slide 17: Positioned for Balanced and Sustainable Growth
Positioned for Balanced and Sustainable Growth Strategically focused on important medical specialty – Eye care as a faster-growing health care specialty sector – Importance of vision for quality of life Alcon as unrivaled global leader in eye care – Ability to leverage current operations – Durabilit
Slide 18: Solid Sales Growth and Profitability
Solid Sales Growth and Profitability 5-Year CAGR +10.7% +14.8% +18.1% $7,000 $6,499 $6,000 $5,000 (in millions) $4,000 $3,000 $2,261 2005 2007 2008 2006 2009 $2,007 $2,000 $1,000 $0 Sales Operating Profit Net Earnings Figures as reported
Slide 19: Alcon: A Compelling Opportunity
Alcon: A Compelling Opportunity Clear leader in eye care with a long record of success Unrivaled product breadth and geographic diversity Unique blend of focus, experience and breadth built over 65 years Eye care one of the fastest growing medical specialties Long-term growth opportunities – Aging p
Slide 20: Financial Review
Financial Review Rick Croarkin Senior Vice President, Finance and Chief Financial Officer
Slide 21: Sales
Sales Q4 Full Year (dollars in millions) (dollars in millions) +14.5% Reported +3.3% Reported $1,800 +8.5% Organic Growth $6,600 +6.3% Organic Growth $1,650 $1,715 $6,499 $6,400 $1,500 $1,498 $6,294 $6,200 $1,350 $1,200 $6,000 Q4 2008 Q4 2009 FY 2008 FY 2009 Organic sales growth is a non-GAAP measur
Slide 22: Gross Profit
Gross Profit Q4 Full Year (dollars in millions) (dollars in millions) $1,400 $5,000 +6.9% +1.3% $1,300 $4,885 $4,800 $1,269 $4,822 $1,200 $1,187 $4,600 $1,100 $1,000 $4,400 Q4 2008 Q4 2009 FY 2008 FY 2009 % of % of 79.2% 74.0% 76.6% 75.2% Sales Sales
Slide 23: Operating Income
Operating Income Q4 Full Year (dollars in millions) (dollars in millions) $700 $2,400 -6.3% +2.2% $600 $2,300 $573 $2,261 $500 $537 $2,200 $2,213 $400 $2,100 $300 $2,000 Q4 2008 Q4 2009 FY 2008 FY 2009 % of % of 38.3% 31.3% 35.2% 34.8% Sales Sales
Slide 24: Net Earnings
Net Earnings Q4 Reported Q4 Adjusted (dollars in millions, except EPS) (dollars in millions, except EPS) $600 $600 +8.0% +15.1% $500 EPS $1.61 $500 EPS $1.51 $488 EPS $1.41 EPS $1.41 $458 $400 $424 $400 $424 $300 $300 $200 $200 Q4 2008 Q4 2009 Q4 2008 Q4 2009 % of % of 28.3% 26.7% 28.3% 28.5% Sales
Slide 25: Net Earnings
Net Earnings Full Year Reported Full Year Adjusted (dollars in millions, except EPS) (dollars in millions, except EPS) $2,300 $2,300 -2.0% +13.3% EPS $6.79 EPS $6.81 EPS $6.66 $2,000 $2,047 $2,000 $2,051 $2,007 EPS $6.00 $1,811 $1,700 $1,700 $1,400 $1,400 FY 2008 FY 2009 FY 2008 FY 2009 % of % of 32
Slide 26: Proposed 2010 Dividend
Attractive Dividend Payout Dividend Historical Payout vs. 2010 Proposal $1,200 $1,105 $1,048* $1,000 Proposed 2010 Dividend (dollars in millions) $800 $750 $613 $600 $417 $400 $302 $200 $169 $107 $0 2003 2004 2005 2006 2007 2008 2009 2010 * 2009 dividend includes the impact related to the $236 milli
Slide 27: 2010 Full Year Financial Guidance
2010 Full Year Financial Guidance • Organic growth in the mid-to-high single digits • Diluted earnings per share: U.S. GAAP EPS guidance $7.30 - $7.55 • Excludes potential impacts of: – U.S. health care reform – Change-in-control and Novartis merger proposal • Lower interest rates reduce other incom
Slide 28: Fourth Quarter 2009 Webcast
Fourth Quarter 2009 Webcast February 12, 2010
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (USD in millions) Foreign Currency Organic 2009 2008 Change Change Change Global Sales: First Quarter $ 1,493 1,536 (2.8) % (7.6) 4.8 % Second Quarter 1,677 1,736 (3.4) (6.7) 3.3 Third Quarter 1,614 1
Slide 30: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (USD in millions) Foreign Currency Organic 2009 2008 Change Change Change Emerging Market Sales: First Quarter $ 263 277 (5.0) % (19.1) 14.1 % Second Quarter 281 306 (8.2) (16.3) 8.1 Third Quarter 297
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Global Sales (USD in millions) Twelve Months Ended Foreign December 31, Currency Organic 2009 2008 Change Change Change Sales by Geography: United States $ 2,914 2,807 3.8 % -- 3.8 % Developed International 1,163 1,152 1.0 (10.2) 11.2 Emerging Ma
Slide 32: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (USD in millions) Foreign Currency Organic Change Change Change Glaucoma Sales 17.4 % (3.3) 20.7 % Advanced Technology IOLs 29.3 (3.1) 32.4 Note: Organic change calculates sales growth without the imp
Slide 33: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in millions, except share data) Net Earnings Q4 Growth Full Year Full Year 2009 Q4 2009 Q4 2008 % 2009 2008 Growth % As Reported $ 458 $ 424 8.0% $ 2,007 $ 2,047 (2.0)% 2009 Tax Adjustment $ 30 -- --
Slide 34: Non-GAAP Reconciliations
Non-GAAP Reconciliations ALCON, INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (in millions) Full Full Q4 2009 Q4 2008 Year Year 2009 2008 Global Sales $ 1,715 $ 1,498 $ 6,499 $ 6,294 Net Earnings $ 458 $ 424 $ 2,007 $ 2,047 As Reported % of Sales 26.7 % 28.3 % 30.9 % 32.5 % Net